RE:RE:RE:how comeThey are not bleeding cash, they are still cash-flow positive, but not sufficiently cash-flow positive to meet debt-service obligations. This is true — or at least close to true — even if one ignores debt sevice obligations to unsecured creditors.
But what is even more disturbing is that management is predicting that the decline will continue at least until the end of this fiscal year. If this is the case, the secured creditors may end up with the company, but it will be a pyrrhic victory. They will still have a lot of work to do to get themselves whole. Of course, much will depend upon how low the company goes before being able to turn things around, if it can.